Stockbrokers tell Sitharaman to lower transaction cost, withdraw LTCG; key demands to boost investment

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Published: August 12, 2019 6:24:27 PM

A host of measures was proposed by an association of stockbrokers to the government on Friday last week with an aim to make the investment into the equity markets more attractive.

Sensex, FPI tax proposal, HCL Technologies, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Index membersThe issues were raised in a meeting with the representatives of the financial sector with the Finance Minister Nirmala Sitharaman, ANMI said in a statement.

A host of measures was proposed by an association of stockbrokers to the government on Friday last week, with an aim to make the investment into the equity markets more attractive. The demands from Association of National Exchanges Members of India (ANMI) range from lowering transaction cost to reducing long-term capital gains tax (LTCG). “Due to the steep fall in markets in July the sentiment has turned acutely negative. This calls for urgent steps to boost investor sentiment specially for Indian investors. Long term capital gain tax and taxation on dividends in the hands of Indian investors should be withdrawn,” ANMI said in a statement.

“We strongly believe that equity investment needs to be incentivized. We may not be in a position to give any fiscal incentives till the next budget. However, currently we feel that PSU banks, which need equity funds for recapitalisation, can raise funds from retail investors by offering them an appropriate discount”, it added.

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The issues were raised in a meeting with the representatives of the financial sector with the Finance Minister Nirmala Sitharaman, ANMI said in a statement.

“We strongly believe that equity investment needs to be incentivized. We may not be in a position to give any fiscal incentives till the next budget. However, currently we feel that PSLI hanks, which need equity funds for recapitalization, can raise funds from retail investors by offering them an appropriate discount,” the association also said.

The Finance Minister is holding a series of meetings with different representatives of the industry so as to design new measures to revive the slowing economy. The stock markets are also in  a turmoil post budget which saw the government announcing an additional surcharge tax on the super rich and FPIs.

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